Last Friday, I told you that timing markets isn't only possible, but it's very, very profitable, and I ticked off lots of household names who've proven it works by making billions of dollars timing markets successfully.
But there's a trick to it.
Today, I'm going to reveal what it is.
Why now?
Because a lot of people think this bull market's going to end, maybe very soon, maybe spectacularly, and they either haven't gotten fully invested out of fear, or they're going to sell early, maybe very early, because they're afraid they won't see the end coming.
Even worse, investors who don't see the end coming could ride the market all the way down and lose, maybe everything.
Good timing allows you to load up in the right direction and gets you out of the way when things turn.
The kind of timing I'm talking about that's going to make you a lot of money, in bull markets and bear markets, isn't the kind of clockwork timing traders employ.
It's timing based on two things: investment horizons and trends. Let me tell you more...
The Difference Between Trading and Investing Is Time
Every single investment starts off as a trade. All that means is no matter how much research or analysis you do, or don't do, you start off the same way, you put on a position.
Time determines whether your position is a trade or an investment.
If I put on a trade thinking it's going to be an investment, if it goes my way and it keeps going up, then it's a good investment. The more time I'm in that position, the more it goes up, and the better investment it is.
If I put on a position, even if I think it's going to be an investment position, and it goes against me, I sell it and take my loss and reassess the investment, maybe getting into it again later. Or, I'll buy more stock lower, averaging down, because I'm highly confident it's going to turn around and go up.
If my would-be investment stock doesn't go up, at some level, usually for me between a 10% to 20% hit, I'll take my loss and move on. That position ends up being a trade, a losing trade, and not a big deal.
If my stock goes up and keeps going up, it's an investment, and I'll keep the position. I'll even add to it on the way up, as long as the company I'm invested in is doing what it's supposed to be doing.
On November 21st, we'll be unveiling a transformational breakthrough and a $2 million "surprise." You have to see this with your own eyes to believe it. But you must RSVP now.
And more importantly, I'll stay invested as long as the market is going up.
You must know what the company you're invested in is doing and how well it's doing it. Otherwise, even if the market's soaring, if you're hanging onto a loser, like a Blockbuster or a General Electric, you're going to be a loser.
Timing when to get out of a stock is about knowing the individual company, the stock you're holding.
I'll write about how to deal with individual stocks that aren't going your way another time.
Today, we're talking about timing the market.
Time the Market Right to Stop Losing Life-Changing Gains
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]The market's almost always more important than your individual stocks. That's because when the market turns down into a bear market, it moves stocks, even good ones, in the direction it's going,
Right now, even more than from last October through Christmas when the market scared the heck out of everyone, the media, financial pundits, and rich clients of major banks, have turned negative on stocks.
They're pulling out all the negative narratives again and fearmongering that this latest run up is a trap. Some analysts are saying we're in the process of building up to a "blow-off top". Other analysts are saying that all the negatives which the market's marched over and the whole "wall of worry" which the market's climbed is going to come crashing down on investors, maybe like in 2008, maybe worse.
And guess what, they may be right.
But that doesn't matter, because they may be right next month, next quarter, next year, or in three years.
If you get out of the market now or before it turns, you could lose out on massive gains.
According to some analysts, as many as 30% to 50% of investors who got out of the market in 2008, taking their massive losses off the table, didn't get back in at all because they were afraid.
They missed out on the longest bull market in history. Even now, there's so much money on the sidelines, by some reckoning $1.5 trillion to $20 trillion.
I've taken apart those numbers and where they come from and the real number is closer to $2 trillion to $3 trillion in the United States.
In fact, that's enough money to power stocks higher by 10%, 20%, 50% or more, depending on when and how that money comes in.
I've been bullish since March 19, 2009, and I'm on record and have been on TV cheering on the bull the whole time. I turned "cautious" only twice.
In the 128-month bull market, the uptrend was broken twice. Once in late 2015 to early 2016 when the market fell but didn't turn into a bear market. Stocks made a double bottom then, with one low in 2015 and the other in early 2016. That double-bottom created a support level that was never broken. That's why I was only "cautious" during that dip.
After that pullback, another steep run began, taking stocks to all-time highs again and again and again.
The only other break in the bull market's uptrend was 2018's October-to-Christmas sharp, quick correction. Stocks turned back higher so quickly after that blip investors who panicked and got out have missed getting back in. I called for caution then, but never called the action for the end of the bull market.
That's because the major trend of the market turned right back up. And lo and behold, we made new all-time highs again and again.
It's not over, maybe not even close. This bull market can take stocks a lot higher.
What matters, the only thing that really matters, is the "trend" of the market.
The trend is your friend. It's been up. It's still up. Stay invested until the trend turns.
What might cause a turn in the market? I'll lay out all the negative narratives starting Friday and tell you what you need to watch and how to tell what impact they are having separately and collectively.
No cubicle, no desk - you could do it from anywhere in the world. Would that transform your life? On Nov. 21, you can witness something with your own eyes that could make this possible. We'll even announce a "$2 million surprise." But you must RSVP now.
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The post The End of the Bull Market Is Coming: Here's How to Time It Correctly appeared first on Wall Street Insights & Indictments.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.